House Executive Committee Briefing:
The House Executive Committee passed House Amendment #3 to SB3660, the Emergency Budget Act last night.
Synopsis of the Emergency Budget Act
It's purpose is to authorize changes in state programs necessary to implement the FY2011 budget. The Governor may require reserves from appropriations of all general funds and special state funds to all state agencies including:
- Boards, commissions and agencies of the Executive Branch
- Universities
- Political bodies and corporate of the State, and
- Administrative units and corporate outgrowths of state government created by statute.
Constitutional officers, the legislative and judicial branches, local governments, school districts, and the Board of Election are specifically excluded. Amounts placed in reserve shall not be transferred, obligated, or expended unless an Act of the 96th General Assembly generates revenue to support such transfer, obligation of expenditure.
Key components:
All state programs are subject to appropriation - notwithstanding any Act contrary, any expenditure of state funds authorized or required by law shall be subject to the FY2011 budget. This Act will take precedence over any other law, executive order, or administrative regulation.
Amends the Illinois Administrative Procedure Act to provide for emergency rulemaking authority to implement the Emergency Budget Act of FY2011 and any other budget initiative authorized by the 96th General Assembly for FY2011.
Amends the State Act by extending the end of the FY2010 lapse period from August 31 to December 31. Vouchers must be received by the Comptroller before August 31 from agencies.
Every member of the 96th General Assembly is required to forfeit 6 days of compensation during the first six months of FY2011 and again in the second six months of FY2011.
Allows for interfund borrowing and each quarter the Governor's Office of Management & Budget will provide a report to the Commission on Government Forecasting and Accountability, and the General Assembly Leaders containing the following items: Date of transfers, amount of transfers, amount of interest to be paid to fund the origin, and the balance after transfers of both GRF and Fund of Origin. Creates the Railsplitter Tobacco Settlement Authority. The State will sell half of the rights of the Master Settlement Agreement to the new Authority for $1.2 billion, in which the Authority would issue $1.2 billion of tax-free special revenue bonds to pay for the rights of the MSA. Temporary suspension of the State Pension Funds Continuing Appropriation Act, so that no State Retirement Systems shall receive appropriations under the State Pension Funds Continuing Appropriation Act for FY2011.
SB1211 - FY2011 Operating Budget passed out of the House Executive Committee last night. The General Revenue Fund has been kept at FY2010 levels with a 5% reduction
in operational lines. Appropriations from other state funds and federal
funds are identical to the FY2011 Governor's introduced budget
request. The Senate passed a version of this bill out the Senate at
about midnight
The IDOT budget for FY2010 was $33,141,600 in GRF with a reduction in FY2011 of $13,200. They received an increase of $84,320,600 from FY2010 to FY2011 of all other funds. As you are aware, IDOT has moved most of their GRF funding to the Road Fund.
David Vaught filled out a witness slip to testify before the House Executive Committee. However, when prompted by a Representative to testify on SB1211 and the 5% operational cuts, he did not testify. After the committee hearing, he did answer questions from reporters An 8 minute clip was taken by Capital Fax and be viewed by clicking here - David Vaught defends borrowing for pension payments
Lastly, I wanted to share a report by the Commission on Government Forecasting and Accountability with an article in their Revenue Section, titled April Revenues Plunge on Weakness in Income Tax and Federal Sources written by their Revenue Manager, Jim Muschinske. It highlights some of the revenue challenges in the State and also so confirms that the State does not have a spending problem, but instead a revenue problem.
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